Service Tax For Housing Societies – Impact Of Budget 2012
There have been Drastic Changes in the Service Tax law as applicable to Apartment Owners Associations or Cooperative Housing Societies, as presented in Budget 2012. These changes are applicable from 01-July-2012. We compile below all the changes. A circular with clear details from the Service Tax Department is still awaited. Below have been compiled with inputs from two leading Society Accounting Firms – Firm led by CA Guruprasad Pandit in Bangalore and a Firm led by CA Mohanraj Yenagudde in Mumbai. Please note, these are interpretations of the actual Budget Proposal. Please do consult your Auditor before making relevant changes to your accounting process. Summary, For Those In A Hurry: 1. Almost every Society will be eligible for Service Tax Registration (Income above Rs.10Lakh/year) 2. Exemption of Rs.5000/month/ member . An owner of Multiple Flats will almost always exceed this. 3. Almost all Income Heads will come under Service Tax purview, including F...